Nov. 1, 2006 - International Paper yesterday said that it has completed the previously announced sale of 900,000 acres of forestland in Louisiana, Texas and Arkansas to TimberStar Southwest, whose lead investor is TimberStar, a subsidiary of iStar Financial Inc, for about $1.13 billion in cash and notes.

The deal was announced in April and is part of International Paper's sale of the majority of its U.S. forestlands.

In connection with the sale, the parties also entered into a 50-year fiber supply agreement for IP's pulp and paper mills, and a 30-year fiber supply agreement for IP's wood products facilities, both at market prices. Under TimberStar Southwest management, the forestlands will continue to be managed and third-party certified under the requirements of the Sustainable Forestry InitiativeŽ Standard.